Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Emirates Completes Us $2.6 Billion A330 Financing

Emirates Completes Us $2.6 Billion A330 Financing

DUBAI, UAE - With the delivery of its 29th -- and last -- Airbus A330 due later this week, Emirates has completed the massive US$2.6 billion financing programme needed to finance this ultra-modern fleet.

His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Emirates Group Chairman, said: "Since our first A330 was delivered more than four years ago, in March 1999, it has proved to be a top-class workhorse -- highly popular with customers and extremely efficient and reliable to operate."

The money required came from a wide range of regional and international sources, including conventional export credit agency and commercial asset-backed debt, and non-conventional sources, such as Islamic funding and equity from Japanese investors.

Dermot Mannion, President, Emirates Group Support Services, said: "We have access to a choice of sophisticated financing structures which rank with the very best in the industry. Dubai's ambitions to win its place as a top-class international financial capital with the creation of the Dubai International Finance Centre will bring new financing opportunities in years to come."

Emirates' excellence in financing has won it many awards from international financial publications, including Euromoney and Transport Finance. The highlight was the Global Treasury Team - 2002 award, in New York, by leading industry publication Air Finance Journal.

Nearly half the money (some US$1.17 billion, or 46%) came from international financial institutions using export credit agency backed debt. Riyaz Peermohamed, Senior Vice President Corporate Treasury explained: "This underlines the confidence the international financial community has in us, particularly the export credit agencies, and indicates our excellent relations with them."

A significant slice (US$715 million, or 27%) was financed on a commercial debt basis. More than half of this (US$446 million) came from western banks, with the balance of US$269 million raised from regional banks.

"We are happy to note that even in difficult times for the aviation industry, both international and regional banks feel comfortable with financing our aircraft on a commercial asset-backed basis," Mr Peermohamed said.

Notably, some 15% (US$386 million) was generated using Islamic funding, a new and fast-growing source of finance, allowing Emirates to acquire five of the A330s.

Mr Peermohamed said: "We have excellent relationships with Islamic banks and look forward to deepening our links with them, as well as forging new ones. This is a liquid market and we will use this type of financing to fund future aircraft too."

Japanese lessors helped to finance seven A330s using a combination of equity and debt. "This is a huge vote of confidence in the airline, as no other carrier in the world has financed so many wide-body aircraft using Japanese equity," Mr Peermohamed said.

Another three of the 29 Airbuses were financed in Euro and four in UK Sterling Pound, helping to create a natural hedge against some of Emirates' cash receipts from the UK and Euro countries. Eighteen were financed using fixed-rate funding, and the other eleven on a floating basis.

Emirates has taken a balanced approach towards managing interest rate exposure and about 45% of its overall debt and operating leases are on a fixed interest rate basis, with the remaining 55% on floating interest rate.

Emirates has one of the youngest fleets of any major international scheduled airline - on average just 36 months. With the delivery of its last A330 at the end of this week, its fleet will include 29 Airbus A330s, 20 Boeing 777s, three Boeing 747 freighters and one Airbus A310.

Its current order book includes 45 of the mighty 555-seat Airbus A380s which enter service in 2006, as well as 26 Boeing 777s, 20 Airbus A340-600s and eight Airbus A340-500s with a combined total value in outstanding orders of some US$26 billion.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>